<p>FIDM on Joint Account (Dec. 2004)</p><p>Question: “I have a case where we froze an ncp's account and the bank sent an answer to withhold stating a balance of $1879.44 that was jointly held. Ncp had arrears totaling $5,377.39 at that date. After the timeframe was expired I sent an order to deliver for half of the asset totaling $939.72. The bank mistakenly sent the entire amount to ccu and the money has since gone out to the cp. The ncp is wanting his girlfriend's half of the money back. The cp is now considering closing her case and wiping out all arrears. Am I mistaken in stating that this was a bank error and is their responsibility?”</p><p>Answer: The Office of General Counsel, states, "Assuming we followed all the procedures set forth in 921 KAR 1:410, and then I think the problem is with the bank and KRS 205.772 (5) will shield the bank. The rule is as set forth in Brown v. Commonwealth, we can go after the money subject to the third-party's ability to show their net contributions and otherwise show what part of the account did not belong to the obligor.</p><p>I would not return any money unless sued and ordered to do so. Let them work it out with the bank if they can, but I would politely decline any assistance to them."</p><p>The following case law and statutes are the pertinent authority for this answer:</p><p>Barton v. Hudson, 560 S.W.2d 20 (Ky.App. Oct 21, 1977)</p><p>"While there is some contrary authority, most courts are agreed that a joint bank account is garnishable by a creditor of only one of the joint depositors.11 A.L.R.3rd 1470, at page 1479: Most courts uphold the right of the husband's creditor to levy against a bank account maintained jointly between husband and wife, at least to the extent that the funds held in the account are shown to be the property of the husband."</p><p>Brown v. Com., 40 S.W.3d 873 (Ky.App. Oct 08, 1999) </p><p>"A party to a joint account may, for attachment and execution purposes, initially be presumed to own entire joint account; however, upon notice and objection, debtor or any third-party account tenant may rebut that presumption by proof of separate net contributions to account and an intention that non-contributor's use of the other's contributions be limited."</p><p>KRS 205.772(5) http://www.lrc.state.ky.us/KRS/205-00/772.PDF "The financial institution shall not be liable for encumbering or surrendering any assets held by such financial institution in response to a notice of lien or levy issued by the cabinet, for any other action taken in good faith to comply with the requirement of this section."</p>